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3 Tips Successful Franchisors Use for Building Winning Franchises

For better or worse, change is inevitable.  Change is required for people and business alike.  How we face the demands and challenges presented during a change process impact our immediate outcome and our approach to the next set of changes.  When in doubt, we turn to our leaders and mentors for answers and encouragement. Having support and guidance during the process improves the results.

According to Deloitte’s’ 2015 global Human Capital Trends report, organizations today navigate a “new world of work” that requires a dramatic change in strategies for leadership, talent, and technology.  As a franchisor you know that your success is directly linked to the success of your franchises. In the wake of change, franchisees look to you for support and solutions they need to remain competitive and move forward with the changing business landscape.  Winning franchises last the test of time in part due to leadership, tools, and services you provide to support the franchisees on their path to success.

Here are 3 tips successful franchisors use for building winning franchises:

1. Build a solid infrastructure

When a franchisee buys your franchise, they’re not just buying a license to use your brand name, but they are also buying into your experience, insight, and business instincts.  They trust that they are adopting an established business model which has been perfected over time and can withstand the ups and downs of the future.

One of the biggest challenges to growing a franchise network is building a solid infrastructure required to support franchisees.  Systems, procedures, and support form the backbone of a franchise, yet these issues are not always at the top of the priority list for franchisors.  Far too often, franchisors have systems in place which are “good enough,” but not great (i.e., may have worked well for corporate, but couldn’t be rolled out effectively across the franchise network).

A good rule of thumb for franchisors is to regularly assess your systems, processes and procedures and evaluate what you will require to support franchises.  For example, a leading hotel franchisor discovered hotel associates had difficulties using its new property management system and looked for a solution to help increase adoption of the software which resulted great franchisee adoption and ROI.

2. Take a close look at your training and support programs

Many franchisors pride themselves on their exceptional franchisee training programs, which offer a vast array of choices from on-site training to online classes.  While having many choices for training sounds good on paper, the reality is that many franchisees struggle to find the time or resources to participate in training or to see the true value and redefine their priorities to include it.  Now more than ever franchisors need to keep training costs in mind and find more cost efficient ways to provide impactful training.

As a result, many franchisors are turning to performance support systems.  Performance support provides just-in-time training by supporting users in real-time, in the live application – shortening training duration and reducing costs.  It doesn’t require travel or learning a new set of skills.  Learn more here.

3. Create a culture of engagement and communication

It’s no coincidence that culture and engagement ranked as the number one trend in Deloitte’s report for leading in the new world of work.  Those leading the pack use phrases like “Culture trumps strategy” to make their point about the value and impact of a strong culture.

Listening to your franchisees pays off.  A McDonald’s franchisee in Cincinnati came up with the idea for the fast-food chain’s popular Filet-O-Fish sandwich.  A Dairy Queen franchisee invented the company’s blockbuster Blizzard frozen treat.  Would we know these food names today if it wasn’t for a culture of communication? Franchisors that develop strong relationships with their franchisees, regularly engage and listen to them, gain a better understanding of their overall business and are more likely to provide the correct tools for success.

The main thing to remember is that you’re setting the stage for a win-win business relationship! Do you have any words of advice on running a strong, successful franchising operation? Please share your comments below.

Kryon Systems helps organizations around the world to improve their business results by shortening or eliminating training, reducing users’ mistakes, increasing productivity and facilitating compliance with corporate policies and procedures. Kryon’s flagship solution, Leo, provides performance support to organizations. When using Leo, business managers can rest assured that their workforce performs at the level they expect, from the first time, every time.

Topics: Operations, retail



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